Mortgage needed quickly

Rommo_3

Hi everyone,

I'm hoping somebody would be able to give me the benefit of their experience.

I'm interested in buying a property at an upcoming auction (7 Dec) and am wondering how long it would take to arrange a mortgage in principle and if there's enough time to do this before the auction date.

The money for the purchase would be coming from equity already held in another property. Does this have any impact on the timeframe?

Any help would be much appreciated.

Thanks
Rommo

dimbo61

Have you got a mortgage on your existing property ?
If so better to start with your existing lender.
Second port of call would be your bank ( time !)
They would both know you and your banking/loan history

suisidevw

When buying from auction the sale has to be wrapped up within the month doesn't it?

herbiesjp

You would ideally need the valuation done and mortgage offered by the day of the auction - not just an AIP

That would then only need the legal work to be done in the allotted timescales

One_Day_Rodney

As I understand it........

As it is an auction sale, the fall of the gavel is an exchange of contracts and you will need to have your deposit funds available on the day. The amount of deposit is detailed in the auction pack for the property along with all the searches and sellers solicitors details etc.

If you explain to your potential mortgage provider that it is an auction, they may push through their valuation for you so they can give you an offer in principle.
This maybe different if the mortgage LTV is low.

You need to have all your financial paperwork for the mortgage organised and to hand to ensure there are no delays.

The provider will probably insist on you having a conveyancer employed before the sale to ensure the property is as you and they think (outstanding charges, freehold/leasehold, rights of way/access etc. etc. )
Depending on the property condition, they may insist on certain surveys too.

Best of luck!

suisidevw

Ahh yes, the deposit on the day. My Dad had to pass on £100k on the day of buying a property a few years ago!

Rommo_3

dimbo61 wrote: »

Have you got a mortgage on your existing property ?
If so better to start with your existing lender.
Second port of call would be your bank ( time !)
They would both know you and your banking/loan history

Hi,

There's no mortgage on the property that the equity would be released from. The equity required would be around £110k and the property was valued last year at £230k.

I understand that there's a 10% deposit required on the day shouldn't be a problem to gather.

HSBC (my bankers) say that it's a service they do offer but not always for investment purposes, mainly for residential purposes.

Are there any lenders that specialise in auction mortgages/equity release?

thanks again!